The Efficient and Fair Approval of “Multiple-Cost-Single-Benefit” Projects Under Unilateral Information
AbstractThis paper focuses on indivisible multiple-cost–single-benefit projects that must be approved by the government. A simple mechanism is proposed that ensures an efficient and fair implementation of such projects. The proposed mechanism is appropriate for a unilateral information structure: the single beneficiary has complete information on the cost and benefit of the project while the government official has no such information and the cost bearers have information only on each other's costs.
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Bibliographic InfoPaper provided by Department of Economics, Bar-Ilan University in its series Working Papers with number 2009-14.
Date of creation: May 2009
Date of revision:
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Postal: Faculty of Social Sciences, Bar Ilan University 52900 Ramat-Gan
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indivisible project; single beneficiary; multiple-cost bearers; unilateral information; efficient and fair implementation;
Other versions of this item:
- Nava Kahana & Yosef Mealem & Shmuel Nitzan, 2009. "The Efficient and Fair Approval of "Multiple-Cost-Single-Benefit" Projects under Unilateral Information," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(6), pages 947-960, December.
- Kahana, Nava & Mealem, Yosef & Nitzan, Shmuel, 2009. "The Efficient and Fair Approval of "Multiple-Cost - Single-Benefit" Projects under Unilateral Information," IZA Discussion Papers 4181, Institute for the Study of Labor (IZA).
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-17 (All new papers)
- NEP-CTA-2010-04-17 (Contract Theory & Applications)
- NEP-PPM-2010-04-17 (Project, Program & Portfolio Management)
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